The Power of Market Validation
Jul 22, 2019
So, you have a great idea but do you know if people like and are ready for it?
That is the question.
Anthony shared a great story with me recently and I wanted to pass it on to you.
It was a story about about a crowdfunding project by toy manufacturer, Hasbro's HASLAB.
Hasbro's first crowdfunding project was a toy sail barge inspired by the Star Wars collection - Jabba’s sail barge
, "the Khetanna."
It is 4 feet long, costs $500. Essentially a massive collector’s toy that’s rare, expensive, and aimed at a very specific audience.
Here is where market validation comes in.
This project is very expensive to produce, so as you can imagine its definitely worth knowing that the target audience exists and likes the idea before going ahead.
Missing this step could mean throwing away a lot of money, time and energy.
Here’s how Haslab handled it:
HASLAB announced the project to their crowd stating that if enough fans preordered the toy by a set date the giant collectible will actually go on to get made.
They set a goal of 5,000 preorders of the $500 collectable (that’s a whopping $2,500,000 total), before committing to go ahead to production.
(Now, this isn't something we would be jumping to back but...)
In reality this project went on to gain 8810 of the 5000 backer goal and thus move on to creation!
They demonstrated the interest was there, so they knew it was worth making it happen.
There are a variety of approaches to gaining market validation but we hope sharing this helped.
Do let us know if market validation is something you would like to hear more about in the comments below!
AND if you are curious to see what a 4 foot long jabba sail barge actually looks like then...
To your crowdfunding success,
Ali Jane Selwyn
Step this way
Check out our PDF on essential tools that will help you run a successful crowdfunding campaign!
31 page PDF - Immediate download!